Constellation Brands (STZ) has transformed its profitability profile through its massive expansion in the beer market and move to premiumization over the last seven years. Uniform Accounting highlights that the market is pricing in a reversal of recent profitability expansion and below-average growth, but management is confident about executing on their strategy and is aligned to continue to do so, signaling the potential for equity upside as the company continues executing....
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May 23, 2022
CPE – No Traded CDS, Base Case iCDS 149bps
Negative Case iCDS 235bps, 2028 8.000% Bond YTW of 7.643%, iYTW of 4.423%
B2 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens
Low Refinancing Need...
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May 20, 2022
Guidewire Software (GWRE) currently trades at a premium relative to Uniform assets, with a 4.9x Uniform P/B (V/A’)....
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May 19, 2022
- The Worst Is Likely Behind Us, That’s A Positive Catalyst For H2 2022. Investors have become spooked about headline risk wherever they look. However, most of these headlines have peaked in terms of the risk they can create. Concerns about inflation and geopolitical risk have created significant near-term volatility in the stock market, presenting an opportunity for investors.
- The market has also been spooked about the dramatic 200bps+ rise in the cost to borrow across U.S. corporate markets, with the Fed still raising rates. However headline rates are unlikely to continue to spike, and corporate credit remains very healthy.
- U.S. corporates are remarkably profitable and growth is starting to accelerate.
- Monthly inflections:
- Credit (55% of macro outlook): Neutral (negative change)
- Earnings Growth (30%): Bullish (no change)
- Momentum/Sentiment (10%): Positive (no change)
- Valuations (5%): Positive (positive change)
- Timetable Recommendation: 50/50 Split for 5-10 Year Money and upgrade to 10 Month Dollar Cost Averaging....
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May 19, 2022
DraftKings Inc. (DKNG) currently trades at a premium to Uniform assets, with a 5.1x Uniform P/B (V/A’)....
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May 19, 2022
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May 18, 2022
Featured Top Idea
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HES – Hess Corporation
Trade: Buy 2027 4.300% Bonds CUSIP: 42809HAG2 (4.524% YTW, 3.696% iYTW)... -
May 18, 2022
Hess Corporation (HES) currently trades below corporate and historical averages relative to Uniform earnings, with a 14.2x Uniform P/E (Fwd. V/E’)....
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May 17, 2022
Silvergate Capital (SI) has built a robust banking network for the cryptocurrency industry, driving massive growth and network effects in the process. Uniform Accounting highlights that the market is missing Silvergate’s value proposition and profitability and growth potential, indicating equity upside...
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May 17, 2022
US Foods Holdings Corp. (USFD) currently trades around corporate and historical averages relative to Uniform earnings, with a 23.3x Uniform P/E (Fwd. V/E’)....
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